Monroe Real Estate News

What your lender should tell you about purchasing a property

August 3rd, 2018 9:37 AM by Judy Chapman

Let's pretend you are finally ready to purchase a home.  First time homebuyer?  Novice?  Even the experienced homebuyer might not have thought about this.

First step for you is to get a pre-qualification letter from your lender.  Any Realtor would like to see this and know you have it before you start looking for a home.  Now once you have been pre-qualified, we don't want to mess this up.  How can you mess up a pre-qualification?  Easy!!

This is not the best time to decide to change job!  Your lender will want to know that you are able to repay the loan they are getting ready to give you.  They want to know you are stable in your job.  Most lenders (check with yours) will want to see that you have been on the job for at least 2 years.  If you change jobs, completely different from what you have been doing (i.e. waiter at a restaurant to a truck driver), they are pretty much going to make you wait 2 years for job history.  If you are a waiter and you change restaurants, they will want several months copies of paystubs to review before you can move forward.

I know you are excited to be buying a new home, but don't go out and buy a whole house full of furniture for the new home and charge it.  That is going to play havoc with your debt/income ratio.  Oh, and don't buy that new truck to park in your new garage, unless you pay cash for it.  The lender will run your credit at the beginning and end of this process so you won't be able to hide it.

I Know!!  You never thought about this, right???  Your lender should tell you this, but they may take it for granted that you know.  Now, You Do!!  Happy House Hunting!!
Posted by Judy Chapman on August 3rd, 2018 9:37 AM